| A | B |
|---|
| A(n) ________ is a tool used to analyze a business transaction’s effect on an account. | T account |
| The amount entered on the left side of an account is the _________. | Debit |
| _______ requires a debit and a credit for each transaction. | Double-entry accounting |
| An account’s _________ is always on the increase side of an account. | Normal Balance |
| An amount entered on the right side of an account is a(n) _________. | Credit |
| The __________ is an “official” list of all the accounts used by a business to record its transactions. | Chart of accounts |
| The top of the T account is used for account titles. Credits are entered on the left side of the T; debits, on the right. | False |
| A credit to an account always increases it; a debit to an account always decreases it. | False |
| An asset account appears on the right side of the accounting equation and is also increased on the right side of its T account. | False |
| A business groups its account in a ledger. | True |
| A business transaction can affect two accounts on the same side of the accounting equation and still leave the equation in balance. | True |
| The difference between the debit and the credit amounts in an account is the account balance. | True |
| The normal balance for asset accounts is | Debit |
| The normal balance for the owner’s capital account is | Credit |
| An increase in a liability account is recorded as | Credit |
| A decrease in an asset account is recorded as | Credit |
| A decrease in the owner’s capital account is recorded as | Debit |
| The normal balance for accounts receivable is | Debit |
| The normal balance for accounts payable is | Credit |
| An increase to office furniture is | Debit |
| An increase to Gilberto Ferreira, Capital is | Credit |
| A decrease to Accounts Payable is | Debit |
| List the six steps of business transaction analysis | Identify the accounts affected, classify, determine the amount of + or –, which account is credited, which account is debited, T-account |
| Melanie Nelson deposited $15,000 in cash from personal funds into the business checking account. | Cash in bank- debit; Melanie Nelson, capital-credit |
| Melanie Nelson issued a check for $1,750 to buy store equipment. | Store Equipment-Debit; Cash in bank-credit |
| Melanie Nelson bought a computer for the business credit from modern equipment Inc. for $1,599. | Office Equipment-debit; Accounts payable-credit |
| Melanie Nelson issued a check for $682 to buy supplies for the office. | Office supplies-Debit; Cash in bank-Credit |
| Melanie Nelson issued a check for $800 to modern equipment inc. as half payment for the computer. | Accounts Payable-debit; Cash in bank-credit |
| Melanie Nelson sold $65 in office supplies to Hector Ramirez, CPA, on account. | Accounts Receivable-debit; office supplies-credit |
| Melanie Nelson invested an additional $3,000 cash in the business. | Cash in bank-debit; capital-credit |
| Melanie Nelson received a $65 check from Hector Ramirez, CPA, for office supplies purchased earlier. | Cash in bank-debit; accounts receivable-credit |
